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Telecommunications Underpins Israel-s Economic Growth

1 May 1997
 ISRAEL MAGAZINE-ON-WEB: May 1997
 
     
Telecommunications Underpins Israel's Economic Growth
 
 

 

 

 

  Israel's inexpensive, quick and flexible telecommunications solutions provide countries and firms throughout the world with upgraded national and local phone systems.

Israel has one of the highest rates of cellular telephone use in the world, with nearly 20% of the country's residents owning mobile phones. In supermarkets, at bus stops and on the beach Israel seems to be a nation permanently on the phone.

Mobile phone use in Israel was pioneered by Pelephone, owned jointly by Motorola and Bezeq, the country's government-owned telecom provider. But a second company, Cellcom, not only made the field competitive in 1995 with innovative digital technology, but, in a unique marketing strategy, offered calls that were almost as cheap as regular phone calls.

Mobile phone use took off and the Israeli authorities have had to confront a new reality. The police hand out stiff fines for speaking on hand-held phones while driving, and the army has made mobile phone use for soldiers on duty a serious disciplinary offence. Nevertheless, the benign ring of the mobile phone is now a familiar sound in public places, and the granting of a license to a third operator later this year is likely to increase mobile phone use significantly.

Israel's conventional telephone network is also one of the world's most sophisticated, with 100% digitilization and over 40 lines per 100 people. Bezeq - the country's government-owned telecommunications corporation, which has spearheaded these telecommunications advances in partnership with leading-edge private enterprises also provides value-added data services, such as electronic mail, Internet access and databases, and is developing the country's information highway.

"Through our subsidiary Bezeq Globe," explains Bezeq spokesman Roni Mandelbaum, "we have applied our experience in rapidly and effectively upgrading national and regional telecommunications systems to other countries around the world. We not only plan and install systems in other countries, but are subsequently prepared to operate and maintain them."

Completed projects include the installation of a satellite station in Alma-Ata, Kazakhstan, which provides international communications, voice and data to the former Soviet republic. Before the existence of the satellite, all Kazakhstan's international communications had to be routed via Moscow. The new station was brought into service in three months, and an Israeli team remains on site to give advice on operation and maintenance. A similar project is being implemented in neighboring Uzbekistan.

In Hungary, a joint venture of Bezeq and local partners is developing telecommunications infrastructure in three regions in the south of the country. All 108,000 lines will include digital switching and transmission systems. In Poland, Bezeq, together with Israeli high-tech firm Elbit and the Polish telecommunications company RP Telecom, is installing 81,000 lines near Warsaw, while in India, Bezeq is setting up a cellular phone network in three southern states. Motorola Israel is developing a cellular phone network for Accra in Ghana.

In addition to specializing in basic infrastructure, Israeli companies have also penetrated high-tech niche markets. ECI Telecom has developed systems that can increase five-fold the capacity of digital satellite and fiber-optic cable telecommunications links. The company's customers include many of the major telecommunications firms in Europe and North America, and have also sold well in China and elsewhere in Asia.

Many of Israel's largest telecommunications firms, such as Tadiran and Telrad, have been instrumental in developing the country's own infrastructure and are now implementing projects overseas. Tadiran specializes in local wireless loops, while Telrad's small rural switch systems have proven very popular in Eastern Europe and the former Soviet Union. Telegate has sold its cable line technology throughout Latin America, while Teledata exports access network solutions-to Eastern Europe.

"Israeli companies," says Mr. Mandelbaum, "provide relatively inexpensive, quick and flexible telecommunication solutions using innovative methods, and improvising according to local circumstances."

 
 
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   israel at 50 years: successes and challenges in the telecommunications sector
   
 
   
 
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